A decrease in the demand for incandescent light bulbs due to changes in consumer

Question

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in

A) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price.

B) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity.

C) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease.

D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease

Explanation / Answer

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in

D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease

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